By
Godfrey Benjamin
April 26th, 2024
Apple hits this milestone amid multiple factors like formidable cash flow, strong balance sheets, new products, and paying dividends to investors. Analysts are expecting a further runup in the stock price.
With the Dow Jones (INDEXDJX: .DJI) and the S&P 500 (INDEXSP: .INX) hitting record-high levels, Apple Inc. joins the party too. On Monday, January 3, Apple Inc (NASDAQ: AAPL) stock surged an all-time high to $182 thereby making Apple the first company ever to hit a $3 trillion market cap.
Apple Hits $3 Trillion Market Cap
This happens as the tech giant continues to report record-breaking quarters of big growth across its product line. Furthermore, the company’s strong cash flow also makes the AAPL stock a safe haven during times of market uncertainty.
If we look at historic charts, Apple’s valuations have tripled in a matter of just four years. Besides, the AAPL bull run won’t stop anytime soon as analysts see further room for an upside. During its fourth-quarter earnings, Apple witnessed annual growth across its product categories. The company’s revenue surged a staggering 29% year-over-year.
Apple’s service business also registered a strong 25.6% growth year-over-year as it delivered more than $18 billion in revenue during the quarter. Morgan Stanley’s Katy Huberty has raised the price target for AAPL stock to $200. This comes without considering Apple’s foray into new verticals of virtual reality and augmented reality.
Even Wedbush analyst Daniel Ives said that the milestone is a “watershed moment” for the company. Ives further expects that AAPL has more room to grow while valuing Apple’s service business at $1.5 trillion. He added:
“Hitting $3 trillion is another historical moment for Apple as the company continues to prove the doubters wrong with the renaissance of growth story playing out in Cupertino”.
Apple Outperforms Bitcoin on Yearly Chart
Apart from the $3 trillion mark, Apple has touched another milestone. Post Monday’s price rally, the world’s largest company has now outperformed the world’s largest cryptocurrency on a one-year chart.
Over the last year, the AAPL stock has delivered a staggering 40% returns while the Bitcoin returns stand at 38%. Furthermore, the returns for the AAPL investors come with much lesser volatility when compared to Bitcoin.
Apple stock has been one of the safest bets for investors amid times of market uncertainty. Apple has been ticking all the boxes when it comes to good cash flow, strong balance sheets, new products, and paying dividends to investors.
Tech peers to Apple, like Microsoft Corp (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and Google LLC (NASDAQ: GOOGL) aren’t far away. While Microsoft currently has a valuation of $2.5 trillion, Google stands just short of $2 trillion and Amazon at $1.75 trillion.